https://www.taxtmi.com/caselaws?id=286883 Assessment of a dissolved firm could not be sustained under section 26(1) of the Indian Income-tax Act, 1922, because that provision applies only to a mere change in constitution or a newly constituted firm at the time of assessment. A later agreement could not retrospectively alter the legal position against third parties. The facts also showed succession to the business rather than discontinuance, so section 44 was inapplicable. Although section 26(2) was the proper provision in principle, it then lacked the procedural machinery needed to support a pre-amendment assessment. The result was that the assessment orders were invalid. en-us Wed, 20 May 1964 00:00:00 +0530 Thu, 19 Mar 2020 12:55:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=286883 Assessment of a dissolved firm could not be sustained under section 26(1) of the Indian Income-tax Act, 1922, because that provision applies only to a mere change in constitution or a newly constituted firm at the time of assessment. A later agreement could not retrospectively alter the legal position against third parties. The facts also showed succession to the business rather than discontinuance, so section 44 was inapplicable. Although section 26(2) was the proper provision in principle, it then lacked the procedural machinery needed to support a pre-amendment assessment. The result was that the assessment orders were invalid. Case-Laws Income Tax Wed, 20 May 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=286883